Victory Capital Switches to Deloitte as New Auditor

Victory Capital Holdings, Inc. (NASDAQ:VCTR), a $3.69 billion investment advisory firm currently trading below its InvestingPro Fair Value, has announced a change in its independent registered public accounting firm. The company, which has demonstrated robust financial health with a perfect Piotroski Score of 9 and impressive 59.61% return over the past year, is making this change amid strong operational performance. On Monday, the company’s Audit Committee informed Ernst & Young LLP (EY) that they would not be reappointed following the completion of their services for the fiscal year ended December 31, 2024. Instead, Deloitte & Touche LLP (Deloitte) has been appointed as the new auditor for the fiscal year ending December 31, 2025.

The decision to change auditors is a direct result of auditor independence requirements by the Securities and Exchange Commission (SEC) related to a Contribution Agreement between Victory Capital and Amundi Asset Management S.A.S. Victory Capital has chosen to proactively address potential independence concerns, emphasizing that the switch was not due to any issues with EY’s performance or the company’s financial statements. This proactive approach aligns with the company’s strong governance practices, reflected in its healthy financial metrics including a solid current ratio of 2.1 and steady revenue growth of 8.82%.

EY’s reports for the fiscal years ended December 31, 2024, and 2023, contained no adverse opinions or disclaimers and were not qualified or modified in any way. Furthermore, there were no disagreements or reportable events between Victory Capital and EY during those fiscal years or the subsequent interim period through March 4, 2025.

In compliance with SEC regulations, Victory Capital provided EY with the disclosures in the Form 8-K report and has included EY’s response letter as part of the filing. During the fiscal years in question and the subsequent interim period, Victory Capital did not consult with Deloitte on any accounting principles or transactions that would have influenced their decision on any accounting, auditing, or financial reporting issues.

This announcement is based on the information contained in a press release statement filed with the SEC. For investors seeking deeper insights into Victory Capital’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, one of 1,400+ detailed company analyses available to subscribers, including 8 additional ProTips and extensive financial metrics that can help monitor corporate governance and financial performance.

In other recent news, Victory Capital Holdings, Inc. reported a notable increase in its Assets Under Management (AUM), reaching $176.5 billion by the end of January 2025, up from $171.9 billion in December 2024. This growth was observed across various asset classes, including Mutual Funds and ETFs. Additionally, Morgan Stanley (NYSE:MS) raised its price target for Victory Capital to $68, maintaining an Equalweight rating, following a slight increase in the company’s earnings per share (EPS) to $1.39. BMO Capital Markets also adjusted its price target for the company to $82, highlighting a positive outlook for 2025 and the anticipated benefits from the acquisition of Amundi U.S.

Barclays (LON:BARC) increased its price target to $75, noting that Victory Capital’s adjusted EPS of $1.45 surpassed consensus estimates, driven by higher management fees and AUM. Victory Capital has announced a 7% increase in its quarterly dividend and authorized a new $200 million share repurchase program. The company remains active in mergers and acquisitions, with the Amundi U.S. acquisition expected to finalize in the first quarter of the year. Investors are keeping a close watch on these developments, which signal potential growth and profitability for Victory Capital.

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